Boston Scientific acquires atrial fibrillation device company Atritech

Boston Scientific (NYSE:BSX) has acquired Atritech, a Minnesota-based maker of a novel product to treat atrial fibrillation, with an up-front payment of $100 million in a deal worth up to $375 million. Details will be finalized in the first quarter.

The device giant, headquartered in Natick, Massachusetts, said in a press release that additional payments of up to $275 million through 2015 for meeting revenue and regulatory goals. Atritech is developing a product that could be among the first to break into a $1 billion American market.

Atritech’s device, the Watchman, closes the left atrial appendage in patients with atrial fibrillation to prevent blood clots from entering the blood stream. The product thereby reduces their risk of stroke and offers a promising alternative to anticoagulant medication, the standard treatment that increases risk for bleeding.

Since it was founded in 2000, Atritech has raised approximately $100 million in developing and testing the product, which recently completed an 800-patient randomized clinical trial demonstrating its efficacy. Atritech started selling the CE-marked product abroad in 2009 and is currently conducting trials to receive FDA approval.

Atritech’s investors include Split Rock Partners, Thomas, McNerney and Partners, Prism Venture Partners, Tullis-Dickerson, The Vector Group, Thoma Cressey Funds, The Rahn Group, SightLine Partners and Affinity Capital.

Boston Scientific CEO Ray Elliot said in the news release that Atritech’s product will play a “key role” in growing its atrial fibrillation and structural heart therapy markets, which he deemed “priority growth initiatives.” Hank Kucheman, president of the company’s cardiology, rhythm and vascular group said sales will focus on electrophysiologists and structural heart-focused interventional cardiologists. Revenues from Boston Scientific’s cardiovascular group of products makes up about 42 percent of total revenues, but is down about 7 percent in the first nine months of 2010 compared to the previous year.

It’s been a relatively aggressive 2011 for Boston Scientific since selling its neurovascular business to Stryker for $1.5 billion. Along with the Atritech deal, BSX earlier this month acquired neuromodulation startup Intelect Medical for a total of $78 million.

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